What Is a Line of Credit Loan?
A line of credit loan works a lot like credit card. With a line of credit loan, you are approved to use up to a certain amount of cash. You can get the cash when you need it without re-applying for credit each time that you use it. This is a particularly good credit option if you will have ongoing or recurring expenses or for emergencies. Types Of Line of Credit Loans There are two types of line of credit loans: Secured Loan A secured line of credit allow you to use the equity that you have built up in your house, or some other asset, to make purchases. These loans are typically secured by a home or business. Unsecured Loan An unsecured line of credit is based on an excellent credit history. Not everyone qualifies for this type of loan. Interest Rates and Closing Costs Before selecting a line of credit loan, you should find out the terms of the loan agreement. The loan terms will include the current interest annual percentage rate (APR), which is the percentage of interest that you wil
